Many businesses continue to overlook Power Take Off (PTO) usage, and the available fuel tax refunds in Ontario. Fuel tax is where the Ontario Government gets the funding to do road repairs. You might be entitled to a tax refund if your company owns power take-off equipment.
Here is a partial list of the PTO equipment that might be eligible for the fuel tax refund:
- Cement mixers
- Refrigeration units
- Aerial buckets
- Lifts and craned
- Power vacuums
Please visit http://www.fin.gov.on.ca/en/refund/pto/ for more information.
Companies that utilize a portion of their fuel to power auxiliary power take-off (PTO) equipment, maybe able to obtain a provincial tax refund. Here is how the Motor Fuels and Tobacco Tax branch of the Ministry of Finance defines auxiliary PTO equipment as the following:
- An auxiliary unit which receives its power from the transmission of the motor vehicle to engage the auxiliary PTO unit or
- An auxiliary unit with its own engine where the fuel or gasoline consumed in the operation is drawn directly from the fuel tank, which supplies the engine in the motor vehicle to which the auxiliary unit is attached.
Ministry of Finance criteria must be met, in order to obtain a refund:
- Use the power-take off equipment in Ontario.
- Use fuel from the licensed vehicle’s operating fuel tank to run the power take-off equipment.
- Not use the power from the power take-off equipment to drive the motor vehicle.
- Not use the motor vehicle in any way to transport passengers.
- Not use the power take-off equipment for personal use, pleasure or recreation.
- Have paid fuel tax to Ontario.
You are required to provide documentation to support your refund claim. The Ministry of Finance application refund form requires various pieces of information on each vehicle: the vehicle identification number, license plate, vehicle make and model, PTO unit make and model and the number of litres of fuel consumed in the operation of the PTO equipment for each vehicle the refund is being calculated for.
You can contact the Ministry of Finance if you do not have the data to determine the total litres of fuel subject to refund. The Ministry of Finance maybe able to help you determine fuel consumption for your vehicles, including dump trucks, utility vehicles, garbage trucks and many more.
Please connect with us to find out more about how we can help you tract and claim this expense.